Instead, the city of El Paso recommended a lesser overall increase in rates of $41.7 million – comprising a $39.4 million increase in base rates, and a $2.3 million increase in miscellaneous revenues. That amount would reduce the utility’s proposed revenues by $46.8 million or 67 percent.

In addition, the city asked the commission to reject El Paso Electric’s proposal to introduce an extra rate class for new rooftop solar customers – effectively raising fixed charges for them by $12, which represents one-third more than the $8 paid by other classes of ratepayers.

Indeed, the El Paso Electric rate request was unanimously denied in its entirety, with no small degree of vehemence, by the El Paso City Council on December 8.

Resolution

The new agreement includes the following disbursements:

An annual non-fuel base rate increase of $37 million;

An additional annual non-fuel base rate increase of $3.7 million related to Four Corners Generating Station operating costs;

“While we did not anticipate some of the delays that occurred following the filing of the first proposed settlement in March, we are pleased to have been able to reach a resolution,” said El Paso Electric CEO Mary Kipp. ”

The settlement documents were filed with Administrative Law Judges assigned to oversee EPE’s Texas rate case, who have been asked to return the settled case to the PUCT for approval.